THE DEVASTATING ECONOMIC EFFECTS OF THE "GAINFUL EMPLOYMENT" REGULATION
The proposed "Gainful Employment" regulation poses lasting harm to the U.S. economy. It would seriously hurt the administration's education goals, as it does not effectively distinguish between programs that prepare students for "gainful employment" and those that do not. The President needs to find a better way to spur colleges to better prepare students for the working world, while simultaneously protecting the tax payer and the students themselves.
In order to accommodate the students displaced by the "Gainful Employment" Regulation, taxpayers would need to foot an additional $5.2 billion, annually. States have made no indication of a willingness to incur this multi-billion dollar cost and community colleges have not been able to absorb students already displaced by the drop in private sector enrollment.
The outlook for the displaced students does not look good as "Gainful Employment" threatens to close them out of postsecondary education. A huge number of lower income students would lose out on the opportunity to improve their situation through higher education. This will have a lasting, detrimental impact on the U.S. economy.
As President Obama has stated time and time again: access to postsecondary education is an extremely important economic issue. Our changing and global economy has put a premium on a skilled and educated workforce. Without the broad access to education that the private sector offers, many people will not find their way to a more prosperous life.
PSCUs open doors to many of the 9 million unemployed and 90 million undereducated Americans by providing a skills-based education. To remain competitive over the next decade, we must identify between 8 and 23 million new workers with postsecondary skills. PSCUs are a necessary part of that solution, having produced over 800,000 degrees last year alone.
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